The Clearing House Drives Closer to Standing-Up New Innovative National Real-Time Payment System

NEW YORK–(BUSINESS WIRE)–Today, The Clearing House (TCH) announced it has entered into a letter
of intent with VocaLink, the UK-based international payment systems
provider, to help build and deliver core elements of TCH’s new real-time
payment system for the United States.

“Building a real-time payment system is centered around meeting customer
needs,” said Jim Aramanda, CEO of The Clearing House. “I am confident
that working together with VocaLink we can build the most innovative and
widely used real-time payment system in the world.”

“We are delighted to be working in collaboration with The Clearing House
to develop real-time payment solutions with innovative value added
services for the USA,” said David Yates, CEO of VocaLink. “As the
digital payments landscape continues to evolve, creating global market
and business opportunities, it is vital that the USA, which is the
largest developed economy in the world remains at the forefront of
payments innovation.”

In designing the capabilities of the system, TCH made consumer
protections a priority and intends for the new system to be compliant
with the Consumer Financial Protection Bureau’s (CFPB) “Consumer
Protection Principles” for faster payment systems. Some of the core
customer benefits include:

  • Ubiquity – the system will be accessible by all financial institutions
    in the U.S., regardless of size or charter type;
  • Seamless Integration – the system will enable customers to use their
    current accounts to make and receive payments using their financial
    institutions’ existing online or mobile banking platforms;
  • Commercial Payments – supports complex business payment services
    including electronic invoicing, rich remittance data and confirmation
    of delivery;
  • Customer Control – every payment is initiated directly by the sender,
    providing complete control and transparency to customers;
  • Certainty – senders and receivers will receive immediate notification
    of payment, and risk of returned payments will be eliminated, because
    sending financial institutions immediately verify good funds;
  • Built to Last – extensibility in the system’s architecture will allow
    it to be flexible so it can adapt to changing market needs in the
    future; and
  • Conforms to International Standard – meets ISO 20022 standards for
    real-time payments. Immediately allows FIs and customers to use the
    same formats, technology and processes across borders; which will
    eventually support international payments through interoperable
    domestic payment systems.

“Our real-time payment system will enable customers across the country
to make secure, convenient payments instantaneously,” Aramanda
continued. “This real-time payment system will enable business to
process invoices, governments to send disaster relieve funds, and
individuals to pay contractors – all within an instant.”

VocaLink designed, built and manages the real-time technology behind the
UK Faster Payments Service on behalf of the Faster Payments Scheme.
Since the service was launched in 2008, over 4 billion payments have
been securely processed and the real-time infrastructure has provided a
platform for further innovation, driving the development and
proliferation of a wider range of services, including mobile payments.
VocaLink has also exported its real-time capabilities to other markets
and its Immediate Payments Solution powers the FAST payments service in
Singapore, which has enabled it to become one of the world’s most
advanced and dynamic payments markets.

The Clearing House is the only private-sector ACH Operator in the
country, processing approximately 50% of all commercial ACH volume in
the U.S. Its customers include credit unions, commercial banks, savings
banks and savings and loans. It also owns and operates the CHIPS system,
the largest private-sector U.S.-dollar funds-transfer system in the
world, and an Image Payments Network, an industry utility that connects
financial institutions of all sizes to get check images anywhere they
need to go.

About The Clearing House Established in 1853, The Clearing House
is the oldest banking association and payments company in the United
States. It is owned by the world’s largest commercial banks, which
collectively hold more than half of all U.S. deposits and which employ
over one million people in the United States, and more than two million
people worldwide. The Clearing House Association L.L.C. is a nonpartisan
advocacy organization that represents the interests of its owner banks
by promoting and developing policies to support a safe, sound and
competitive banking system that serves customers and communities. Its
affiliate, The Clearing House Payments Company L.L.C., which is
regulated as a systemically important financial market utility, owns and
operates payments technology infrastructure that provides safe and
efficient payment, clearing and settlement services to financial
institutions, and leads innovation and thought leadership activities for
the next generation of payments. It clears almost $2 trillion each day,
representing nearly half of all automated clearing-house, funds transfer
and check-image payments made in the United States. See The Clearing
House’s web page at


The Clearing House
Sean Oblack, 202-649-4629